Tax Deed Investing Help

[Jeremey McClain]

Hello all, 

I was wondering if anyone here has any experience with tax deed investing. It’s a method that I would like to gain some guidance on. I hear mixed reviews but I’m still interested in trying. Would love to connect with someone who has experience. 

[Jay Hinrichs]

Originally posted by @Ned Carey:

@Jeremey McClain in part it depends on the state. Different states different tax sale laws. In general you are buying a property without seeing the inside. Many states have a "redemption period" which means the owner can come back and pay the taxes with interest and or a penalty which comes to you. 

If the property is occupied you have to deal with the occupants who will have different rights based on which state you are in. Also tax deed properties usually cannot be sold or financed because you cannot get title insurance. In order to get title insurance you have to do what is called a "Quiet Title" action. This can cost $1500-$3000

 Ned if this person is from CA and he is interested in CA tax deeds..   CA is a tax deed state.. there is no right of redemption. although getting title insurance is tricky depending .. there are some cheapo insurance companies that will cover them.. but then sometimes the lenders wont go on their insurance as its not a name brand.

also out our way its RARE as hens teeth to have a home go to tax sale.. tax sales are 99.9% vacant land and or slivers of land you know the kind.. its not the Upper mid west or out east big urban cities with tons of vacant properties.. 

My dad was in it in the 60s and 70s  he bought hundreds upon hundreds of parcels at tax sale it was a yearly event and quite fun actually but like I said rare is it a home.. I think in all the years we bought ONE improved property..   Now not saying absolute but you know what I mean..